Corporate law in Venezuela is an area that has evolved over time. We are currently seeing changes within the internal structures of companies that allow lawyers to analyze their business practices and follow up on their legality. Undoubtedly, the adoption of new forms of organization is leading us to a preventive environment where companies will be able to solve their internal problems without affecting their reputation. And lawyers specialized in Corporate Compliance have the great challenge of creating risk prevention programs tailored to the needs of each industry. In this article we will delve into these reflections and we will explain a little of what corporate law is and how it works in Venezuela.
What is corporate law?
Corporate law is the branch of law that studies and interprets the relationships between the company, the state and the market. Lawyers who specialize in corporate law dedicate their services as legal managers, staff or external legal advisors. The purpose of this is to keep control of the legal requirements that each company must develop within its commercial activity. To strengthen the security and compliance with national and international regulations by companies around the world.
This is an aspect of commercial law and is carried out under the control of the legal structure of a company. This means that the regulations and rules of the legislations where the activities are carried out will dictate the standard to which small and medium sized companies must adhere. Understanding that the applications of corporate law range from the incorporation of the company to the operational rules of commercial, labor, administrative and tax activities. Thus allowing the ideal conditions for the internal control and security of a company.
How does corporate law work in Venezuela?
Like any type of economy, in Venezuela there are different entities and laws that regulate the commercial activities of individuals. Corporate law works through them to regulate daily practices and create healthy environments for the growth of companies in the country. That is why all those people who want to start a business or expand should seek advice from a lawyer who has experience in the field. Given that at the time of incorporation or expansion, the partners are assumed as a legal entity and they adhere to the regulations issued by the SAREN, SENIAT, Social Security Law, Civil Code, Organic Labor Law, Investment Funds Law, among others.
In the article How to register a company in Venezuela? We answer basic questions about the incorporation of a company in the country. In this way you can begin to understand what are the requirements requested by the SAREN for the incorporation of the same. After that you must be very clear about the industry in which the activities of your company are framed, because there are different entities that regulate such industries. For example, the SENIAT is the entity in charge of the control and collection of the taxes developed in each commercial activity depending on the nature of the same.
What is the direction of corporate law in Venezuela?
Currently many companies are incorporating new organizational practices in their daily dynamics. Thus, these companies are gradually learning and adhering to what is known as Corporate Compliance. Although the figure of a lawyer specializing in this area is not yet well recognized, many CEOs or owners of companies have already made use of external advisors to ensure that their practices are within the framework of the law. These advisors are now known as Compliance Officers, and although they may seem a new figure, they have been helping many companies around the world to legitimize their practices for years.
In Venezuela the case is not very different, over the years law firms such as Alan Aldana & Abogados offer their clients an analysis of their business practices to ensure that everything is in order. At the same time a risk prevention program is designed, which together with the administrative staff of the company, is carried out periodically to follow up on such practices. This results in the periodic review of permits, concessions, tax payments, social responsibility, tax returns, among others. Thus reducing the risk associated with non-compliance with employees, non-compliance with the state, money laundering and others. This is why corporate law now has a new focus associated with risk prevention and mitigation. Because it is possible to act against irregular situations at the time they arise, maintaining the reputation of the company.
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